Energy Service Companies (ESCo’s) have access to a variety of innovative methods to fund long term heat network projects, each tailored to mitigate financial risks and capitalise on energy savings, providing guaranteed, sustainable and cost comparable heat to customers.
Heat networks are complex, but our comprehensive ESCo solutions make it easy for operators to provide an exceptional customer experience while staying focused on core business goals. Aligning with industry best practices, we support a fair and transparent service, preparing operators for upcoming regulations. We also provide a tailored customer website - Vital Community Energi, that can be translated into 104 languages, supported by educational animations and customised communications, simplifying heat network information for customers. You can find out more about our ESCo Services here.
ESCo’s often qualify for grants and rebates offered by the government or private entities, but the application process and numerous deadlines along the route to commercialisation can be complex. We are highly experienced in applying for funding through schemes like the Green Heat Network Fund (GHNF), Scottish Heat Network Fund (SHNF) or Heat Network Efficiency Scheme (HNES)
Traditional debt tools such as loans or bonds are also common. These allow ESCo’s to undertake substantial projects by borrowing funds, which are then repaid from the revenues generated by the onward sale of heat energy. This method is particularly useful for large-scale projects and is often supported by favourable terms from capital investment institutions.
Some projects can attract external investors who provide the necessary capital. These third-party investors are then repaid through the energy revenues achieved, sharing the financial benefits with the ESCo’s. This arrangement can be beneficial as it spreads the financial risk and enhances project viability.
Investing in their own projects is a strategic approach that ESCo’s can utilise. By committing their own capital, the ESCo stands to gain or lose based on the project’s performance. Additionally, such investments allow ESCo’s to retain more control over project execution and management, ensuring that everything is done to the highest standard to maximise deliverability, efficiency and returns.
